UOP plans to shut down the U.S. operations of Katalistiks International, its fluid catalytic cracking catalyst manufacturing unit, because of a surplus of FCC catalysts.
Katalistiks operations will be phased out in the next 30-60 days to allow customers time to secure new supplies. The company is providing customers sales and technical services designed to assure a transition.
All U.S. Katalistiks sales offices will close, as will the company's main office and research center in Baltimore and manufacturing plant in Savannah, Ga. Options for the Katalistiks unit of UOP By of Netherlands are being evaluated.
UOP plans to continue operating profitable FCC additives business.
Katalistiks General Manager R.F. Anderson estimated UOP units produce 10-15% of world refining catalysts. Katalistiks' Savannah plant accounts for about 62.5% of UOP's FCC catalyst production.
Anderson said shutting down the Savannah plant will nearly balance global FCC catalyst markets. Without the closing, the estimated world nameplate capacity of FCC catalyst manufacturers exceeds demand by 25-30%, he said.
Anderson estimated average global FCC catalyst consumption in 1991 at about 1,200 tons/day, with sales totaling about $650 million.
Market analysts estimate FCC catalyst consumption in the U.S., Canada, and Mexico is about 700 tons/day. North American FCC catalyst production is about 840 tons/day including Katalistiks production and about 700 tons/day without Katalistiks.
North American FCC catalyst nameplate capacity is about 1,000 tons/day, analysts said.
Anderson said Katalistiks expects to begin shutting down the Savannah plant about mid-April. Another 30 days will be needed to mothball the plant. No decision has been made about disposing of plant equipment and other assets.
"If there's an attractive opportunity to sell the plant or its equipment intact, we will do that," Anderson said. The company also is discussing plans to dismantle the plant.
UOP, Des Plaines, Ill., is a joint venture of Allied Signal Inc. and Union Carbide Corp.
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